Question

A car bought for $13,000 depreciates at 15% per year. Use an exponential function to find the value of the car after 5 years.

Answer 1

$5768.1

Explanation:

Given data

Cost price= $13,000

Depreciation= 15%

Time= 5 years

The expression for the depreciation is given below

A= P(1-r)^t

Substitute

A=13000(1-0.15)^5

A=13000(0.85)^5

A=13000*0.4437

A=$5768.1

Hence after 5 years, the car will be $5768.1